Correlation Between Gremi Media and Mlk Foods
Can any of the company-specific risk be diversified away by investing in both Gremi Media and Mlk Foods at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gremi Media and Mlk Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gremi Media SA and Mlk Foods Public, you can compare the effects of market volatilities on Gremi Media and Mlk Foods and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gremi Media with a short position of Mlk Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gremi Media and Mlk Foods.
Diversification Opportunities for Gremi Media and Mlk Foods
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gremi and Mlk is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gremi Media SA and Mlk Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mlk Foods Public and Gremi Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gremi Media SA are associated (or correlated) with Mlk Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mlk Foods Public has no effect on the direction of Gremi Media i.e., Gremi Media and Mlk Foods go up and down completely randomly.
Pair Corralation between Gremi Media and Mlk Foods
Assuming the 90 days trading horizon Gremi Media SA is expected to under-perform the Mlk Foods. In addition to that, Gremi Media is 1.3 times more volatile than Mlk Foods Public. It trades about -0.12 of its total potential returns per unit of risk. Mlk Foods Public is currently generating about 0.03 per unit of volatility. If you would invest 94.00 in Mlk Foods Public on August 27, 2024 and sell it today you would earn a total of 22.00 from holding Mlk Foods Public or generate 23.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.45% |
| Values | Daily Returns |
Gremi Media SA vs. Mlk Foods Public
Performance |
| Timeline |
| Gremi Media SA |
| Mlk Foods Public |
Gremi Media and Mlk Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gremi Media and Mlk Foods
The main advantage of trading using opposite Gremi Media and Mlk Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gremi Media position performs unexpectedly, Mlk Foods can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mlk Foods will offset losses from the drop in Mlk Foods' long position.| Gremi Media vs. Asseco Business Solutions | Gremi Media vs. Detalion Games SA | Gremi Media vs. Asseco South Eastern | Gremi Media vs. Movie Games SA |
| Mlk Foods vs. Asseco Business Solutions | Mlk Foods vs. Detalion Games SA | Mlk Foods vs. Asseco South Eastern | Mlk Foods vs. Movie Games SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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